Mortgage financing system

ABSTRACT

The present invention is a method for providing mortgage financing to a borrower while additionally creating the opportunity for the borrower to invest in their long and short-term financial security. In real estate purchase, a mortgage is extended for greater than the real estate purchase price. The surplus amount is applied against at least one investment vehicle, so that after the periodic payments are completed, the borrower has equity in real estate and an interest in at least one investment vehicle. The investment vehicle provides security for the mortgage.

TECHNICAL FIELD

The present invention relates generally to loan and mortgage financing.More specifically, a method for providing mortgage financing to aborrower while additionally creating the opportunity for the borrower toinvest in a range of investment vehicles is disclosed.

BACKGROUND OF THE INVENTION

The present invention is a method for providing mortgage financing to aborrower while additionally creating the opportunity for the borrower toinvest in their long and short-term financial security.

There are a number of traditional mortgage systems. For example, in aFixed Rate Mortgage Program, a borrower repays the amount of themortgage loan in monthly mortgage payments for the term of the loan.Since the borrower's monthly mortgage payments are fixed, the borrowercan expect to make the same monthly payment for the entire term of theloan.

In an Adjustable Rate Mortgage, the mortgage loan has a “low” startinginterest rate. The “low” starting interest rate is used to calculate themortgage payment for a specified period of time. Once the specifiedperiod of time is over, the interest rate is adjusted. The interest rateis adjusted by adding a set margin, which is determined by the lender,to an interest rate selected from any one of a variety of interest-rateindexes.

Some companies have implemented a system wherein a potential borrowerreceives a mortgage loan equaling 100% of the real estate cost. However,these 100% mortgage loans often involve a number of restrictions,thereby precluding potential borrowers from qualifying for the 100%mortgage loan. Potential borrowers may be required to meet certainrequirements in order to qualify for the 100% mortgage loan, includinghaving an income lower than a certain set amount, working in a specificprofession, or living within a certain distance of a city or town, orserved in the armed service.

England has implemented a system called a Modified Endowment Mortgage.The focus of this system is to pay off the borrower's mortgage at theend of the loan term. During the term of the loan, the borrower pays theinterest only accruing on the mortgage. Any payment that would have beenapplied to the mortgage principal is instead funneled into a vehicleearning interest. The idea is that the vehicle earning interest willaccumulate enough money by the end of the loan term to pay off theentire principal amount of the mortgage. However, if the interest ratesare lowered during the loan term, the vehicle earning interest may notaccrue enough money to fully pay the principal amount of the mortgage atthe end of the loan term. If this occurs, the homeowner must funneladditional money into the vehicle earning interest in order to pay offthe mortgage principal at the end of the loan term.

American companies tried to implement an American version of England'sModified Endowment Mortgage system. However, the American version of theModified Endowment Mortgage system may be considered prohibitive becauseU.S. tax laws vary from English tax laws. Under U.S. tax laws, theEnglish Modified Endowment Mortgage system may be considered“double-dipping,” meaning that borrower's gain tax write-offs for boththeir monthly interest payment and for interest accruing from thevehicle earning interest. Because “double-dipping” may violate U.S. taxlaws, the American version of the English Modified Endowment Mortgagesystem has not been widely marketed.

SUMMARY OF THE INVENTION

The present invention is a method for providing mortgage financing to aborrower while additionally creating the opportunity for the borrower toinvest in their long and short-term financial security.

The method of the present invention creates financially healthyborrowers while reducing the risk of today's mortgage lending practices.Additionally, the method of the present invention supplements and buildsa savings for borrower.

The method of the present invention provides for a collateral investmentin an investment vehicle by having a loan amount approved for aprincipal amount and an investment amount, providing the principalamount to a seller of real estate on behalf of the borrow to pay to aseller and applying the investment amount to purchase one or moreinvestment vehicles, making periodic payments towards the loan amount,and thereby concurrently accumulating equity in the real estate and aninterest in the investment vehicles. Advantageously, the system may beadministered by a system practitioner who may also act as a lender.Further, the loan may be forwarded to an escrow agent, who, upontransfer of the real estate, forwards the funds for the purchase of thereal estate to the to the seller on behalf of the borrower and theremainder to an Investment Entity for the purchase of InvestmentVehicles.

The foregoing and other objectives, features, and advantages of theinvention will be more readily understood upon consideration of thefollowing detailed description of the invention, taken in conjunctionwith the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a table, by way of example, the structure of the mortgagefinancing system of the present invention (The Mana Loan™).

FIG. 2 is a flow chart showing the process, by way of example, of amortgage and life policy application according to the present invention.

FIG. 3 is a table, which compares, by way of example, the mortgagefinancing system of the present invention (The Mana Loan™ System) with astandard mortgage.

FIG. 4 is a graph, which compares, by way of example, the performance ofthe present invention with a standard borrower.

FIG. 5 is a table, which compares, by way of example, the performance ofthe present invention with a standard mortgage both and bank mortgageinvestors.

FIG. 6 is a table summary, which compares, by way of example, theperformance of the present invention when allowing the homeowner to skipmortgage payments to the present invention.

FIG. 6 is a table summary, which compares, by way of example, theperformance of the present invention when allowing the homeowner to skipmortgage payments to the present invention.

FIG. 7 is an example of a loan schedule with a principal amount of$275,000 according to the present invention.

FIG. 8 is a table of an example of loan data with a principal amount of$ 55,000 according to the present invention.

FIG. 9 is an example of a loan schedule with a principal amount of$65,685 according to the present invention.

FIG. 10 is a table of an example of loan data with a principal amount $58,000 according to the present invention.

FIG. 11 is an example of a loan schedule with a principal amount of $275,000 according to the present invention.

FIG. 12 is a table of an example of loan data with a principal amount of$ 55,000 according to the present invention.

FIG. 13 illustrates a life insurance policy.

FIG. 14 illustrates a life insurance policy.

FIG. 15 illustrates a life insurance policy.

FIG. 16 illustrates a life insurance policy.

FIG. 17 illustrates a life insurance policy.

FIG. 18 illustrates a life insurance policy.

FIG. 19 illustrates a life insurance policy.

FIG. 20 describes the Framework of the Mana Loan Amortizer.

FIG. 21 is a schematic diagram of the Mana Loan Amortizer enablingamortization schedule's of the present invention.

FIG. 22 is the instructions of use of the Mana Loan Amortizer.

BEST MODE(S) FOR CARRYING OUT THE INVENTION

The present invention is a method for providing mortgage financing to aborrower while additionally creating the opportunity for the borrower toinvest in their long and short-term financial security. The borrower isalso assisted in building financial strength to meet unforeseeninfluences such as illness, loss of job, or market trends that couldthreaten the loss of their home.

In the present invention, a potential borrower identifies real estatethat the potential borrower would like to purchase. The potentialborrower then applies for a mortgage loan from an entity employing theprinciples of the present invention. The entity employing the principlesof the present invention may be a company, an individual, a bank, amortgage company, a lender, an originator of mortgage loans, or amortgage investor (hereinafter referred to as “System Practitioner”).

In applying for a mortgage loan from a System Practitioner, thepotential borrower fills out a mortgage loan application. The mortgageloan application may be structured as a traditional mortgage loanapplication commonly known and used in the mortgage industry. As will befurther discussed below, depending on how the potential borrower wouldlike to invest in their long or short-term financial security(“Investment Vehicles”), a potential borrower may also fill out othertypes of applications. For example, if a potential borrower would liketo purchase a life-insurance policy as an Investment Vehicle, theborrower may be required to fill out a life-insurance application. Thelife-insurance application would be one commonly known and used in theinsurance industry.

If the potential borrowers mortgage loan application is approved, fundsto cover both the cost of the real estate and the cost of the InvestmentVehicles may be provided (“mortgage loan principal amount”). Standardsfor determining whether a mortgage loan application is approved, may bedetermined by the System Practitioner or by systems or methods commonlyused in the mortgage industry. For example, a System Practitioner mayrequire a credit report, a personal history report of the borrower, or aphysical examination of the borrower.

For purposes of the present invention, funds provided to the potentialborrower may vary based on the cost of the real estate, the cost of theInvestment Vehicles, the potential borrower's financial situation, typesof Investment Vehicles, or optional down payment provided by thepotential borrower.

In one preferred embodiment, the System Practitioner may provide thefunds to cover the mortgage loan principal amount. If the SystemPractitioner is the entity providing the funds, then the SystemPractitioner will forward the funds to an escrow practitioner or othersimilar company (collectively referred to as “escrow practitioner”). Inanother preferred embodiment, the System Practitioner may work through abank or other lender (collectively referred to as “Lenders”) to securethe funds to cover the mortgage loan principal amount. If the Lender isthe entity providing the funds, then the Lender will forward the fundsto the escrow practitioner.

The day that a real estate transaction is finalized, therebytransferring the real estate from the seller of the real estate to theborrower, is commonly referred to in the real estate industry as the“escrow closing” day. On the day of escrow closing, the principal amountof the real estate is forwarded by the escrow practitioner to the selleron behalf of the borrower of the real estate for payment of theprincipal amount of the real estate. The remaining funds held by theescrow practitioner are forwarded to a pre-determined entity or entitiesto purchase the Investment Vehicles.

The Investment Vehicles are purchased in the name of the borrower andare held by the entity funding the mortgage loan principal amount, whichmay be either the System Practitioner or the Lender. The SystemPractitioner or Lender holds the Investment Vehicles as collateral.Examples of the various Investment Vehicles that may be purchased in thename of the borrower, either singularly or in combinations, include:

-   -   Annuities    -   Single Premium Immediate Annuities    -   Universal Life Policies    -   Certificates of Deposit    -   Guaranteed Interest Contracts    -   Mutual Funds    -   Savings Accounts    -   Zero Coupon Bonds    -   Municipal Bonds    -   Variable Life Policies    -   Whole Life Policies.    -   Any other investment whereby a borrower may invest in their        long-term or short-term financial security.

During the loan term, which is a specified period of time that may beset by the borrower, System Practitioner, or Lender, the borrowerprovides mortgage payments to the entity funding the mortgage loan,which may be either the System Practitioner or the Lender. The mortgageloan payments submitted by the borrower pay both the mortgage loanprincipal amount and the interest accruing on the mortgage loanprincipal amount.

FIG. 1 is a chart, by the way of example, the structure of the mortgagefinancing system of the present invention (The Mana Loan System).Specifically, FIG. 1 shows the use of the mortgage loan to purchase anannuity, which in turn pays the premiums of an insurance policy.

FIG. 2 is a schematic flow chart, by way of example, of the mortgagefinancing system according to the present invention. FIG. 2 is a flowchart, showing the process, by way of example, of a mortgage and lifepolicy application according to the present invention. A mortgage andinsurance application is taken from the homeowner and then is processedby normal standards of each industry. In the example of the mortgageloan, credit history and employment history are verified along with anappraisal of the home. Once all of the underwriting guidelines have beenmet, approval will be given and escrow will be given the instructions toproceed with closing. In the example of the completion of the Insuranceapplication, a credit check will be ordered along with a personal healthhistory and non-med physical exam. Once all criteria has been met aninsurance policy will be issued. After both mortgage and insuranceapplication have been approved the annuity yield will be locked in. Themortgage loan, annuity and policy will be funded at close of escrow.

FIG. 3 is a table, which compares and the performance, by way ofexample, the mortgage financing system of the present invention (TheMana Loan System) with a standard loan.

FIG. 4 is a graph, which compares, by way of example, the performance ofthe present invention of the Mana Loan mortgage with a standard borrowermortgage.

FIG. 5 is a table, which compares, by the way of example, theperformance of the present invention for the following: A bank thatholds the Mana Loan mortgage; a bank that holds the standard loanmortgage, a homeowner that holds a Mana Loan mortgage and a homeownerthat holds a standard mortgage.

FIG. 6 is a table, which compares, by way of example, the performance ofthe present invention when allowing the Mana Loan homeowner to skipsixteen mortgage payments to the present invention.

FIG. 7 is a thirty-year loan amortization schedule of $275,000 @ 6.25%example according to present invention.

FIG. 8 is a thirty-year loan amortization schedule of $55,000 @ 6.25%example according to present invention for a 33 year-old male andfemale.

FIG. 9 is a thirty-year loan amortization schedule of $65,000 @ 6.25%example according to present invention for a forty-five year old male.

FIG. 10 is a thirty-year loan amortization schedule of $58,000 @ 6.25%example according to present invention for a forty-five year old female.

FIG. 11 is a thirty-five-year loan amortization schedule of $275,000 @6.25% example according to present invention.

FIG. 12 is a thirty-five year loan amortization schedule of $55,000 @6.25% example according to present invention for a thirty-three year oldmale and female.

FIG. 13 illustrates a life policy for a 33 year-old male according topresent invention.

FIG. 14 illustrates a life policy for a 33 year-old male with standardloan.

FIG. 15 illustrates a life policy for a 33 year-old female according topresent invention.

FIG. 16 illustrates a life policy for a 33 year-old female with standardloan.

FIG. 17 illustrates a life policy for a 45 year-old male with standardloan.

FIG. 18 illustrates a life policy for a 45 year-old female according topresent invention.

FIG. 19 illustrates a life policy for a 45 year-old female with standardloan.

FIG. 20. The Mana Loan Amortizer program was developed to compare theMana Loan system against standard loan products. The program runs withinthe Microsoft Excel framework, and uses Microsoft Visual Basic to runthe application's functions. Microsoft Excel and Microsoft Visual Basicare simply the tools that are used in developing the software.

FIG. 21 is a schematic diagram of the Mana Loan Amortizer enablingamortization comparison's with a standard loan.

FIG. 22 is by the way of example the instructions of how to use the ManaLoan Amortizer as discussed above and shown in FIG. 20.

Instructions on Using the Mana Amortizer

-   -   1. You may have to if needed unprotect the worksheet. On the        Menu bar go to-Tools, protection, unprotect.    -   2. You may also have to if needed unfreeze the panes. On the        Menu bar go to-Window, unfreeze panes.

Borrowers Information Box:

-   -   1. Click on the “State” cell and a drop down menu will appear.

Mana Borrower Details and Calculations:

-   -   1. “Interest Rate” needs to be manually inserted.    -   2. “Term” click on the cell and a drop down menu will appear.    -   3. “Method of Payment” click on cell.    -   4. “Extra Payment every 14 Days” this will reduce the principle        in addition to the amortization.    -   5. “Loan Date” needs to be manually inserted and accordingly the        payment date will automatically calculate.    -   6. “Annuity % of Home” Use a percentage of the sales price of        home.    -   7. “Other Annuity” Use a dollar amount for the annuity instead        of a % amount.

Standard Borrower Details and Calculations:

-   -   1. “Interest Rate” Insert Manually.    -   2. “Method of Payments” Drop down menu.    -   3. “Monthly Mortgage Ins.” Insert Manually.    -   4. “Monthly Policy Payment” Insert Manually.    -   5. “% Down Payment” Insert Manually.    -   6. “Oth Down Payment” Manually insert a dollar amount instead of        a % amount.

Amortization Summary Page:

The “Upon Completion Box” (left side) compares the Mana and StandardLoans when the Mana Loan matures, to finish the comparison manuallyinsert the Insurance Policy's “Cash Surrender Value” corresponding withthe year of maturity.

The “During the Year You Specify Box” (right side) will allow you toview any given year the cost that the borrower has incurred less thepolicy's “Cash Surrender Value” of the same year. You must manuallyinsert the “Cash Surrender Value” of the year you have chosen in orderto finish the comparison. (Note: If you should make a change on thedetail page this will automatically clear the year and cash surrendercells.) Hit save when you don't want the boxes to clear.

Compare the Mana Loan Page:

This page automatically compares all the inputs from the “Details andSummary” pages.

Optimally, at the end of the loan term, the borrower has paid off themortgage loan and is left with a fully paid Investment Vehicle and fullownership interest and rights in the real estate.

An example of one preferred embodiment of the present invention:

-   -   A potential borrower would like to purchase a piece of real        estate valued at One Hundred and Seventy Thousand Dollar        ($275,000.00).    -   The potential borrower fills out a mortgage loan application.        Additionally, the potential borrower fills out a life insurance        policy application with an insurance company. Both the life        insurance policy application and mortgage loan application may        be reviewed according to standards used in the insurance and        mortgage industries.    -   If the life insurance policy application and mortgage loan        application are approved, the System Practitioner funds the        potential borrower with a mortgage loan principal amount equal        to 120% of the purchase price. This would equal a mortgage loan        principal amount totaling $275,000.00 (100% of purchase        price)+$55,000 (20% of purchase price)=Three Hundred and Thirty        Thousand Dollars. For purposes of this example, and as will be        further discussed below, the borrower may also be, at this time,        “locked in” to an annuity percentage rate according to standards        employed in the insurance industry.    -   The funds for the mortgage loan principal amount are forwarded        to an escrow practitioner. On the day of escrow closing, the        escrow practitioner forwards to the insurance company funds        totaling $55,000. In like manner, the escrow practitioner        forwards funds totaling $275,000 to the seller of the real        estate for payment of the principal amount of the real estate.    -   The insurance company takes the $55,000 and purchases, in the        borrower's name, at least two Investment Vehicles.    -   Investment Vehicle No. 1 is an annual cash-bearing instrument.        In this example, the annual cash-bearing instrument is a single        premium immediate annuity. The single premium immediate annuity        is purchased in the name of the borrower, with the $55,000        forwarded to the insurance company by the escrow practitioner.        The single premium immediate annuity is preferably purchased on        escrow closing day and has a percentage rate that was locked in        after the borrower was approved for the mortgage loan principal        amount and life insurance policy. The first annuity payment is        provided the same day the single premium immediate annuity is        purchased in the name of the borrower. The first annuity payment        is then used to pay the first premium of the life insurance        policy, which is further discussed below. Preferably, the        annuity payments will be spread out over at least a 4-year        period, with each annuity payment being used to pay the premiums        of the life insurance policy.    -   Investment Vehicle No. 2 is a life insurance policy funded from        the payments received from Investment Vehicle No. 1. In a        preferred embodiment, the life insurance policy is fully paid in        at least 7 years.    -   During the mortgage loan term, the borrower provides mortgage        loan principal payments to the System Practitioner to pay off        the mortgage loan. These payments are applied to both the        mortgage loan principal (which in this example is $330,000)        amount and the interest accumulating from the mortgage principal        amount.    -   At the end of the mortgage loan term, the borrower will        preferably have paid off the mortgage loan principal and the        interest accumulated from the mortgage loan principal balance.        The borrower will own, unencumbered, Investment Vehicle No. 2,        which in this example, is a life insurance policy. This system        may be beneficial to parties other than the borrowers who are        involved in the transaction. For example, see the following        bullet points:    -   Lender or System Practitioner's rights: The Investment Vehicles,        while purchased in the name of the borrower, are held by the        entity funding the mortgage loan principal amount, which may be        either the System Practitioner or Lender. The System        Practitioner or Lender has rights in the Investment Vehicles as        collateral until the mortgage loan and the interest accumulated        from the mortgage principal amount has been fully paid to the        Lender or System Practitioner.    -   The benefits and industrial applicability of the mortgage system        of the present invention, to the borrower, may include:    -   Fast equity build-up. The borrower may build equity in two ways.        First, with the mortgage payments reducing the mortgage        principal balance, and second, with the yield of the Investment        Vehicles.    -   In a preferred embodiment, a bi-weekly mortgage payment schedule        is utilized. A bi-weekly mortgage loan payment schedule provides        more payments against the mortgage loan balance than a monthly        mortgage loan payment schedule; thereby reducing the mortgage        loan principal more rapidly than if a monthly mortgage loan        payment is used.    -   Investment Vehicles may be transferred from real estate to real        estate as collateral.    -   Investment Vehicles may be able to cover any shortfalls if the        borrower sells the real estate.    -   Preferably, if private mortgage insurance is used, the private        mortgage insurance is lender-based private mortgage insurance        that is worked into the mortgage loan. Lender-based private        mortgage insurance may save the borrower money in non-tax        deductible dollars.    -   If an emergency occurs and the borrower is unable to maintain        the mortgage loan payment schedule, the entity funding the        mortgage loan principal amount, which may be either the Lender        or System Practitioner may withdraw (from the Investment        Vehicles in order to maintain mortgage payments and avoid        forfeiture of the real estate.    -   The borrower may increase the amount of money placed into        Investment Vehicles, which may accelerate the growth of the        Investment Vehicles and may allow the borrower to pay off the        mortgage loan at an earlier date.    -   No down payment is required.    -   An early pay-out option. Rapid reduction of the loan through        bi-weekly payments, plus the growth of the insurance policy's        cash value, gives the borrower the option to pay off the        mortgage balance earlier.

The benefits of the mortgage system of the present invention, to theSystem Practitioner may include:

-   -   Higher yields over Standard “Prime” paper.    -   The mortgage financing system of the present invention does not        affect the already secured portfolios of borrowers.    -   Investment Vehicles are used as collateral and therefore,        exposure to risks such as forfeiture, property devaluation        (depreciation), or borrowers being unable to pay mortgage loan        payments is reduced.    -   If a bi-weekly payment plan is used, the cumulative effects of        the bi-weekly payments rapidly reduce the mortgage loan, plus        the growth of Investment Vehicles build up equity at an        accelerated rate.    -   In case of a temporary interruption of income from the borrower,        the entity funding the mortgage loan principal amount, which may        be either the Lender or System Practitioner, has a secure source        of income from Investment Vehicles in order to receive mortgage        loan payments The entity funding the mortgage loan principal        amount, which may be either the Lender or System Practitioner,        has rights in the Investment Vehicles held as collateral.    -   The borrower will likely do repeat business with the System        Practitioner since the borrower may transfer Investment Vehicles        as collateral for the borrower's next real estate purchase

The benefits of the mortgage system of the present invention, to themortgage investor or Lender may include:

-   -   Higher yields over Standard “Prime” paper (potentially 75 to 100        basis points)Standard.    -   Increased loan volume. The present invention is likely to        attract new borrowers, from the first time homebuyers to        high-income professionals with 660+ credit scores, financial        plans, and solid performing investments that do not want to        interrupt their portfolios to purchase a home.    -   Additional security. The use of Investment Vehicles such as an        annuity and insurance policy as collateral reduces the risk        exposure to the Lender.    -   Faster equity build-up and reduced risk. The cumulative effects        of the bi-weekly payments rapidly reducing the mortgage        principal balance and the growth of the insurance policy cash        value builds up equity at an accelerated rate. The loan        according to the present invention reaches 60% loan to value by        the eighth year.    -   Protection payment interruption. In case of a temporary        interruption of income from the borrower or homeowner, the        mortgage investor or Lender has a secure source of funds from        the insurance policy or other Investment Vehicles to continue        mortgage payments.    -   Life-long borrowers are generated. The Lender or mortgage        investor will have the borrower or homeowner as a client whom        will do repeat business by transferring their insurance policy        or other Investment Vehicles as collateral for their next home        purchase.    -   The benefits of the mortgage system of the present invention, in        creating 15 cross-selling opportunities, may include:    -   Increased policy sales. Adding a waiver of premiums and any        number of various riders augments the attraction of the present        invention.    -   Longer persistency ratios. Because the policy is paid in full up        front, the policy's persistence ratio increases, which in turn        creates higher revenue.    -   Financial planning opportunities. The present invention creates        the atmosphere for cross-selling opportunities such as municipal        bonds, mutual funds, certificates of deposits, annuities,        additional personal loans and other opportunities.    -   Developing total financial planning opportunities. The present        invention creates the opportunity to assist the borrower or        homeowner in reaching personal financial goals.

The Mana Loan™ can be utilized with loans that have no collateral, orloans that require a down payment. Having collateral or requiring a downpayment may or may not lower the interest rate. Also, the Mana Loan canbe structured with airplanes, boats, large construction and farmingequipment. In other words, any type of collateralized loan that normallyrequires a down payment.

The terms and expressions that have been employed in the foregoingspecification are used as terms of description and not of limitation,and are not intended to exclude equivalents of the features shown anddescribed or portions of them. The scope of the invention is defined andlimited only by the claims that follow.

1. A method for providing mortgage financing to a borrower comprising:a. identifying real estate; b. applying for mortgage loan; c. havingsaid mortgage loan application approved; d. receiving a mortgage loanprincipal amount to cover cost of said real estate and at least oneinvestment vehicle; e. forwarding funds equivalent to said cost of saidreal estate from said mortgage loan principal amount to said seller; f.purchasing at least one investment vehicle with funds from said mortgageloan principal amount; g. providing mortgage payments; and h. havingownership interest in said at least one investment vehicle and said realestate.
 2. The method of claim 1, wherein said mortgage payments are fora loan term.
 3. The method of claim 1 further comprising the step ofholding said at least one investment vehicle as collateral against saidmortgage loan prior to vesting full ownership rights as part of step(h).
 4. The method of claim 3 wherein said collateral is held by alender.
 5. The method of claim 4 wherein said lender is a systempractitioner.
 6. The method of claim 3 further comprising the step ofmaking periodic payments against said mortgage loan.
 7. The method ofclaim 6 wherein when unable to make said periodic payments, funds areapplied from said at least one investment vehicle to said mortgage loanequal to said periodic payment.
 8. A method of implementing a loanrepayment plan, which comprises: a. Determining a principal loan amountto be provided to a borrower; b. Determining an additional loan amountto be provided to a borrower; c Determining a repayment term; d.Providing said principal amount; e. Providing said additional loanamount to an investment entity; f. Purchasing at least one investmentvehicle with funds from said additional loan amount; g. Providing loanrepayment increments during said repayment term; and h. Perceiving aninterest in said at least one investment.
 9. The method of claim 8wherein said loan is a real estate mortgage.
 10. The method of claim 9wherein a lender supplies said principal loan amount and said additionalloan amount.
 11. The method of claim 10 wherein said lender takes aninterest in said at least one investment vehicle as collateral againstsaid real estate mortgage.
 12. The method of claim 10 comprising thestep of a system practitioner collecting application criteria from aborrower prior to step (c).
 13. The method of claim 12 furthercomprising the step of said system practitioner providing said principalloan and said additional loan amount to an escrow entity prior to step(f).
 14. The method of claim 13 further comprising the step of saidescrow entity providing said loan amount to a seller and said additionalloan amount to said investment entity.
 15. The method of claim 14wherein said investment entity is said system practitioner.
 16. Themethod of claim 14 wherein said investment entity is a financialinstitution.
 17. The method of claim 8 wherein said investment vehicleis at least one of: an annuity; a single premium immediate annuity; auniversal life policy; a certificate of deposit; a guaranteed interestcontract; a mutual fund; a savings account; a zero coupon bond; amunicipal bond; a variable life policy; a whole life policy; a financialsecurity investment.
 18. The method of claim 8 wherein said additionalloan amount is substantially 20 percent of said principal loan amount.19. A method of mortgaging real estate which provides for a collateralinvestment in an investment vehicle comprised substantially of the stepsof having a loan amount approved for a principal amount and aninvestment amount; providing said principal amount to a seller of saidreal estate; applying said investment amount to purchase at least oneinvestment vehicle; making periodic payments towards said loan amount,thereby concurrently accumulating equity in said real estate and aninterest in said at least one investment vehicle.
 20. The method ofclaim 19 further comprising a first and second investment vehicle,wherein said first investment vehicle is an annuity, and said secondinvestment vehicle is an insurance policy.
 21. The method of claim 19further comprising the steps of purchasing said annuity, followed byapplying said insurance policy, thereby providing security for said loanamount.